FUND PERFORMANCE

Larger hedge funds dominate industry landscape, as 2020 proves to be the “year of outsourcing”

Larger hedge funds dominate industry landscape, as 2020 proves to be the “year of outsourcing”

The biggest hedge fund firms topped performance charts and drew the most investor capital over the course of last year, with 2020 proving “the year of outsourcing” for a range of middle office functions, as the industry demonstrated its value to investor portfolios, according to new analysis by Citco.

HOT OFF THE PRESS

Key considerations for hedge fund succession planning – Part II: Leadership transition involves a maze of complexity

Key considerations for hedge fund succession planning – Part II: Leadership transition involves a maze of complexity

The transition of leadership in the private world of hedge funds is incomparable to corporate America, requiring both a deft touch and significant forward planning. The founders of successful hedge funds will have invested years, often decades, building the business in their image. When it comes time to handing over the keys to someone else, it can be a hugely emotional affair so picking the right leadership has to be approached very carefully.

INNOVATION

‘Twitterisation’: How social media is reshaping asset management firms' business models

‘Twitterisation’: How social media is reshaping asset management firms' business models

Social media networks are now “critical communications channels and sources of real-time data” for investment managers, presenting myriad opportunities – and potentially huge risks – to firms, and dramatically reshaping the way they trade portfolios, build investment ideas and communicate with clients, according to a major new study by SEI.

TRADING

As dust settles on GameStop carnage, hedge funds ponder lasting impact of ‘Reddit raid’ on short selling

As dust settles on GameStop carnage, hedge funds ponder lasting impact of ‘Reddit raid’ on short selling

The co-ordinated billion-dollar raid on hedge funds’ short positions in GameStop by amateur traders represents another risk management factor in a battalion of emerging challenges that now confront managers’ portfolios, industry participants say.

OUTLOOK

Alpha-generating opportunities surge in Japan, as economic recovery and market reforms gather pace

Alpha-generating opportunities surge in Japan, as economic recovery and market reforms gather pace

Japan’s macroeconomic backdrop is strengthening alpha-generating opportunities for hedge funds, with a growing number of newly-launched Japanese equity strategies looking to capitalise on a kaleidoscopic range of stockpicking ideas arising from market-friendly structural reforms, a pick-up in economic momentum, improving fundamentals, and a falling number of coronavirus cases.